Chapter 3706-4 Definitions

3706-4-01 Definitions.

As used in this chapter:

(A) "Qualifying nuclear resource" shall have the meaning set forth in division (A) of section 3706.40 of the Revised Code.

(B) "Qualifying renewable resource" shall have the meaning set forth in division (B) of section 3706.40 of the Revised Code.

(C) "Credit price adjustment" shall have the meaning set forth in division (C) of section 3706.40 of the Revised Code.

(D) "Strike Price" shall have the meaning set forth in division (D) of section 3706.40 of the Revised Code.

(E) "Market Price Index" shall have the meaning set forth in division (E) of section 3706.40 of the Revised Code.

(F) "Electric distribution utility" shall have the meaning set forth in section 4928.01 of the Revised Code.

(G) "Generation Attribute Tracking System" shall be the system maintained by PJM environmental information services, Inc.


Effective: 1/2/2020
Five Year Review (FYR) Dates: 01/02/2025
Promulgated Under: 119.03
Statutory Authority: R.C. 3706.63
Rule Amplifies: R.C. 3706.40 to 3706.65

3706-4-02 Purpose and scope.

(A) This chapter addresses the implementation of the qualifying nuclear and renewable resource program, as detailed in sections 3706.40 to 3706.65 of the Revised Code.

(B) The Ohio air quality development authority may waive any requirement of this chapter, other than a requirement mandated by statute, for good cause shown.


Effective: 1/2/2020
Five Year Review (FYR) Dates: 01/02/2025
Promulgated Under: 119.03
Statutory Authority: R.C. 3706.63
Rule Amplifies: R.C. 3706.40 to 3706.65

3706-4-03 Application requirements.

(A) Not later than February 1, 2020, the owner or operator of a qualifying nuclear resource or qualifying renewable resource may apply to the Ohio air quality development authority to receive payments for nuclear resource credits or renewable energy credits, as applicable, under section 3706.55 of the Revised Code.

(B) An application submitted under division (A) of this section for a qualifying nuclear resource shall include all of the following information pertaining to the resource:

(1) Financial information.

(2) Certified cost and revenue projections through December 31, 2026.

(3) Operation and maintenance expenses.

(4) Fuel expenses, including spent-fuel expenses.

(5) Nonfuel capital expenses.

(6) Fully allocated overhead costs.

(7) The cost of operational risks and market risks that would be avoided by ceasing operation of the resource.

(8) Any other information, financial or otherwise, that demonstrates that the resource is projected not to continue being operational.

(C) As used in this chapter:

(1) "Operational risks" include the risk that operating costs will be higher than anticipated because of new regulatory mandates or equipment failures and the risk that per-megawatt-hour costs will be higher than anticipated because of a lower than expected capacity factor.

(2) "Market risks" include the risk of a forced outage and the associated costs arising from contractual obligations, and the risk that output from the resource may not be able to be sold at projected levels.

(D) The Ohio air quality development authority shall create and publish forms, instructions, and schedules as necessary for the submission of application materials, consistent with the requirements of this chapter and sections 3706.40 to 3706.65 of the Revised Code.


Effective: 1/2/2020
Five Year Review (FYR) Dates: 01/02/2025
Promulgated Under: 119.03
Statutory Authority: R.C. 3706.63
Rule Amplifies: R.C. 3706.40 to 3706.65

3706-4-04 Application approval.

(A) After receiving an application under section 3706.41 of the Revised Code, the Ohio air quality development authority shall review and approve the application, not later than March 31, 2020, if all of the following apply:

(1) The resource meets the definition of a qualifying nuclear resource or qualifying renewable resource in section 3706.40 of the Revised Code.

(2) For a qualifying nuclear resource only, both of the following apply:

(a) The application meets the requirements of section 3706.41 of the Revised Code; and

(b) The resource's operator maintains both a principal place of business in this state and a substantial presence in this state with regard to its business operations, offices, and transactions.


Effective: 1/2/2020
Five Year Review (FYR) Dates: 01/02/2025
Promulgated Under: 119.03
Statutory Authority: R.C. 3706.63
Rule Amplifies: R.C. 3706.40 to 3706.65

3706-4-05 Generation reporting and renewable resource credits.

(A) An owner or operator of a qualifying nuclear resource or qualifying renewable resource whose application was approved under section 3706.43 of the Revised Code shall report to the Ohio air quality development authority, not later than seven days after the close of each quarter, the number of megawatt hours the resource produced, if any, in the previous quarter. The first report shall be made not later than April 7, 2020, and the last report shall be made not later than January 7, 2027. The information reported shall be in accordance with data from the generation attribute tracking system.

(B) The authority shall issue one nuclear resource credit to a qualifying nuclear resource for each megawatt hour of electricity that is both reported under paragraph (A) of this rule and approved by the authority. The authority shall issue one renewable energy credit to a qualifying renewable resource for each megawatt hour of electricity that is both reported under paragraph (A) of this rule and approved by the authority.

(C) Except as provided in section 3706.61 of the Revised Code, the price for a nuclear resource credit paid under section 3706.55 of the Revised Code shall be nine dollars.

(D) The price for a renewable energy credit paid under section 3706.55 of the Revised Code shall be nine dollars.


Effective: 1/2/2020
Five Year Review (FYR) Dates: 01/02/2025
Promulgated Under: 119.03
Statutory Authority: R.C. 3706.63
Rule Amplifies: R.C. 3706.40 to 3706.65